Fashion retailer Forever 21 Inc. is on the verge of filing for Chapter 11 Bankruptcy protection according to sources familiar with the failing fashion retail brand. A decline in sales and hemorrhaging cash, puts the retail fashion store chain in dire straights.
Negotiations with possible lenders to help them restructure debt has come to a standstill. Forever 21 has refused to comment on the matter to all press inquires. “People” familiar with the current state of affairs (anonymous by request inside sources) a Chapter 11 filing would allow them to close stores that are not making a profit and restructure capital to avoid a total retail collapse of the brands brick and mortar stores.
As this was not enough such a move would cause a ripple effect for major mall owners, as Forever 21 is one of the last and largest mall tenants still in the game…..for now after a huge wave of other retail bankruptcies and closures. (“Indianapolis-based Simon counts Forever 21 as its sixth-largest tenant excluding department stores, with 99 outlets covering 1.5 million square feet, according to a filing as of March 31 2019″).
Forever 21 was founded in 1984 and has about 800 locations spread across the U.S., Asia. Europe, and Latin America. While the future of this fast-fashion retail chain is uncertain, it marks another indicator of the effects of the retail apocalypse sweeping over the country and overseas.